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Negotiations OKd on selling uranium to India

CANBERRA, AUSTRALIA — Australia and India have agreed to negotiate a uranium trade pact to fuel burgeoning Indian demand for power, Prime Minister John Howard announced Thursday.

The agreement signals a major shift in the Australian government's policy on global nuclear proliferation.

All of Australia's current uranium customers have ratified an international non-proliferation treaty and have agreed to ensure that radioactive material is not put to any military use or passed on to a third country.

Howard's Cabinet agreed in principle on Tuesday to sell the nuclear fuel to India despite its refusal to sign the non-proliferation treaty. The government argues that nuclear power is key to curbing global warming as the Indian and Chinese economies' energy needs grow.

"We want to be satisfied that the uranium will only be used for peaceful purposes," Howard said.